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4 National Newsagent - September 2006 INDUSTRY NEWS Industry News Gordon and Gotch Turnaround Gordon and Gotch announced a $6.1 million turnaround in operating earnings before interest and tax (EBIT) for the year ended 30 June 2006. Managing Director, Craig Davison, in announcing the result said: "In nancial terms the result represents a clear sign that the new strategic direction and improved business processes introduced over the past twelve months have been well received by our customers. "Gordon and Gotch has worked diligently to gain a greater understanding of our cost base which has lead to stronger business knowledge and more informed commercial decisions. This process has delivered reductions in unnecessary business costs and helped improve control measures over Gordon and Gotch's business negotiations." Gordon and Gotch introduced several business initiatives over the year which saw the company recognised at the 2006 ANF national conference with the bronze trophy for National Supplier of the Year. These initiatives were driven through the introduction of a Supply Pilot Project which delivered the newsagency supply chain a more e cient, sales based supply model. Projects such as EDI Returns and EDI Sales resulted in greater instore e ciencies for newsagents and faster credit processing as well as better sales information, more e ective in-store shelf management and increased cash ow. Commenting on future prospects for Gordon and Gotch, Davison said: "Gordon and Gotch is now consistently recognised as the distributor that listens and responds to the needs of the newsagency and retail market. We have built a positive rapport with newsagents and retail chains and their respective representative bodies and while we are more than happy with the result to date, it is a long process and there is still more work to be done." Newspower Relaunch Newspower Australia has restructured to meet the needs of both large and small newsagents. Despite having the strength of being the largest marketing group, the great diversity of members presented compliance issues for a variety of Newspower agents. The new four-tiered structure will mean the Gold members will pay more than Silver or Bronze but participate in more promotions to suit their newsagencies. The Platinum level will be by invitation only. The National Manager of Newspower Australia, Greg Talbot, explained that each level has a compliance grid, ie Platinum must have computer systems, EDI, XchangeIT, corporate uniforms etc. "The di erentiation of the four levels is largely internal, based on volume of support materials, although some identity elements will vary from level to level. "Each level will be required to participate in all of the eight national promotions with the level of resources tiered so that the higher you are the more you receive," Talbot said. "With four magazine promos per month, monthly stationery deals, a 12 month confectionery calendar, 12 month continual promo calendar with Coke, plus monthly specials on non-core product, the year is pretty full. There are substantial Newspower greeting card deals and rebates for each level," Talbot said. Gold and Platinum agents will participate in an expanded promotional calendar and Bronze and Silver can choose to access any or all, but need to pay extra to participate. The maximum monthly fee is $400. Newspower agents can also win trips to a variety of destinations, including the Melbourne Cup, the Australian Open Tennis, F1 Grand Prix, RL and AFL Grand Finals, Indy on the Gold Coast, ANF Convention, Hallmark study tour to US and the ultimate -- Newspower Agent of the Year -- a trip to New York, Paris and London.